PPC - Used to see the maximum amount of products that can be created with scarce resources
Anything on the line is and efficient use of resources - Inside is inefficient, outside is not attainable
Opportunity Cost - Basically the cost of choosing one option over another
Marginal Analysis - Analyzing benefits vs. costs of economic decisions
Graph shows constant opportunity cost - As you make more wood, you are losing a fixed amount of food, and vice versa
This graph shows increasing opportunity cost: Basically, as you give up more resources for making one thing to make another thing, those resources are less suited to make the new thing, so the opportunity cost is higher
Economic Growth = growing the curve so it reaches farther out;
Some pitfalls in Economics:
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